Case Law Details
PCIT Vs Smart Value Products And Services Ltd. (Himachal Pradesh High Court)
In the present case, Appellate Authority as well as the Tribunal have carefully gone through the record of the case and have found that the Assessing Officer had computed monthwise and quarter wise trading account for enhancing the gross profit. The Assessing Officer had failed to consider the genuine purchases and sales made by the assessee, which had been duly entered in the books of account. The nature of business carried by the assessee was also not considered by the Assessing Officer. The assessee was receiving goods throughout the year from different warehouses, through bills or challans. Lump-sum payments were made to the different suppliers throughout the year. All the records, i.e., books of account, sales and purchase vouchers had been fully produced by the assessee. The Assessing Officer had, however, prepared month wise trading account and had found negative stock in the books of account of the assessee. Although, the Assessing Officer had not found any unrecorded purchases, but had, in his own way, prepared the trading account for enhancing the gross profit. No sales were found outside the books of account. The Assessing Officer could have made the assessment as per the provisions of the Income Tax Act, 1961. In the subsequent assessment years, the Assessing Officer had passed the order under Section 143(3) of the Act in respect of the same business activities of the assessee, which gave rise to net profit of 2.53% and 2.99%.
In the facts and circumstances of the case, the learned Tribunal had, thus, righty dismissed the appeal filed by the department.
FULL TEXT OF THE JUDGMENT/ORDER OF HIMACHAL PRADESH HIGH COURT
Appellant-department has filed the appeal challenging the order dated 28th October, 2015, passed by Income Tax Appellate Tribunal Division Bench, Chandigarh.
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